How 23 advice firms charge their clients

How advisers charge their clients is always an issue which generates debate among our readers.

Not often do you find two different advice firms charging their clients in exactly the same way.

The issue of adviser charges is also going to be examined by MPs in an upcoming Work and Pensions Select Committee inquiry.

We looked at the fee structures of 23 New Model Adviser® cover star firms from this year. It is interesting to see how different each structure is, reflecting different business models and client needs.

Click through to read more.

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Planet 3 Wealth

‘Once’ option (transactional).

'Lite' (Skype, phone, email) ongoing is 0.5%.

'Core' (9am-5pm meetings) initial fixed starting at £500, implementation first £50,000 3%, next £100,000 2.75%, next £150,000 at 2.25%, next £200,000 at 1.5%, next £500,000 at 0.75%, above £1 million 0.1-0.35%. Offset against implementation. Ongoing is 0.75%.

Flex (home and out of hours) initial fixed starting at £500. Ongoing is 1%. Implementation same as 'core'.

Plus (cashflow) ongoing is 1% plus £500 a year.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

How advisers charge their clients is always an issue which generates debate among our readers.

Not often do you find two different advice firms charging their clients in exactly the same way.

The issue of adviser charges is also going to be examined by MPs in an upcoming Work and Pensions Select Committee inquiry.

We looked at the fee structures of 23 New Model Adviser® cover star firms from this year. It is interesting to see how different each structure is, reflecting different business models and client needs.

Click through to read more.

How advisers charge their clients is always an issue which generates debate among our readers.

Not often do you find two different advice firms charging their clients in exactly the same way.

The issue of adviser charges is also going to be examined by MPs in an upcoming Work and Pensions Select Committee inquiry.

We looked at the fee structures of 23 New Model Adviser® cover star firms from this year. It is interesting to see how different each structure is, reflecting different business models and client needs.

Click through to read more.

HFS Milbourne

3% for investments up to £150,000.

1% ongoing.

£325 hourly rate for the senior advice team or director sometimes billed to law firms or clients.

Furnley House

Foundation service: 3.5% initial and implementation, 0.5% ongoing.

Premium service: 2.4% initial, 0.75% ongoing.

Bespoke: Fixed fee, 1.5-2% implementation, 1% ongoing.

Equilibrium

Up to £1.25 million: 0.38% initial capped at £3,125, 1.25% implementation capped at £10,500 and 1.25% ongoing capped at £9,375.

More than £1.25 million: 0.25% initial capped at £1,250, 0.84% implementation on first £3 million, 0.5% for £3-£6 million then negotiable.

Ongoing: 0.75% on first £3 million and 0.25% above that.

White Oak

3% implementation on first £50,000.

2% on next £50,000.

1% on next £50,000 and 0.5% thereafter.

Ongoing: 1% for £150,000 or less and 0.75% thereafter.

RTS Financial Planning

Entry level: £37 for guidance and a passive investment portfolio if suitable.

Tier two: £127 a month for a financial plan, initial work and two meetings a year.

Holden & Partners

Ongoing: 1% up to £1 million, 0.6% on next £1 million and 0.35% above that.

Financial planning fixed fee: usually around £1,250.

Mulberry Bow

Two free initial meetings.

1% implementation for referred clients.

1% ongoing falling to 0.75% after £3 million.

Those who just want planning pay between £5,000 and £20,000 a year.

Planet 3 Wealth

‘Once’ option (transactional).

'Lite' (Skype, phone, email) ongoing is 0.5%.

'Core' (9am-5pm meetings) initial fixed starting at £500, implementation first £50,000 3%, next £100,000 2.75%, next £150,000 at 2.25%, next £200,000 at 1.5%, next £500,000 at 0.75%, above £1 million 0.1-0.35%. Offset against implementation. Ongoing is 0.75%.

Flex (home and out of hours) initial fixed starting at £500. Ongoing is 1%. Implementation same as 'core'.

ADVICE

Under Mifid II rules, advisers will have to disclose costs and charges in full, separated clearly on an annual basis, issuing each and every client with a comprehensive financial statement. So how do advisers articulate their value?

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